Cybersecurity trends in 2024 accounting practices should know

Cybersecurity for accounting firms should always be top-of-mind for firm decision-makers. To protect your accounting practice from experiencing the true cost of cybercrime, it is important to grasp emerging trends.

To avoid potential cyber threats, and protect your firm's financial information, we've highlighted developments in the cybersecurity space you should watch out for in 2024.

Why is cybersecurity important for accountants?

The leading US-based cyber security company CrowdStrike identifies that, due to the sheer amount of valuable financial data accounting firms hold, they are prime targets for cyber-attacks. 

A cyberattack can create potentially devastating risks and exposures for an accounting firm. 

A breach could lead to reputational damage and costly first-party and third-party losses, but it can also wreak havoc inside the firm, including:  

• Direct loss of turnover.  
• Increased staff churn.  
• Customers fleeing to more secure competitors.  
• Management spending their time on tasks that aren’t profit-generating.  
• Clean-up costs.  
• Change in customer perception.  
• Reduced competitiveness. 

Accounting firms which fail to adequately protect their client data can be penalised under the Privacy Legislation Amendment Bill 2022. The Bill has maximum penalties for serious or repeated privacy breaches from the current $2.2 million penalty to whichever is the greater of: 

• $50 million. 
• three times the value of any benefit obtained through the misuse of information, or 
• 30 per cent of a company’s adjusted turnover in the relevant period. 

In their 2022-23 annual cyber threat report, the Australian Cyber Security Centre gave the following cybercrime statistics about accounting firms: 

• Annually, cybercrime costs small accounting practices an average of $46,000 medium-sized practices approximately $97,200 and large practices $71,600.
• Accounting is part of the sixth most targeted sector in Australia, with 4.7 per cent of all cyber-attacks. 
• The number of cyber-attacks has risen 23 per cent in the past year, which is the equivalent to one every six minutes. 

1. Cybersecurity and AI

As artificial intelligence has exploded into the mainstream, it is predicted that in 2024 artificial intelligence in accounting will begin to expand into new areas, such as predictive analytics and automated responses. It is also worth noting the bigger picture here; the global market for AI cybersecurity is expected to reach an estimated $133.8 billion US dollars by 2030.

Artificial intelligence is an opportunity to take preventive cybersecurity measures into a previously unfathomable territory. AI in cybersecurity can extend human expertise by identifying anomalies which indicate malware traffic or attempted hacking. Cybersecurity AI can analyse historical data and current cybersecurity trends.

As AI is expected to become a mainstay in our lives, don't forget to check out our deep-dive on artificial intelligence in accounting.

2. Social engineering attacks

Accounting firms will need to be mindful in 2024, as AI's deep-learning capabilities have given hackers the opportunity to develop more complex attacks.

Cybersecurity attacks in 2024 will become more hyper-personalised, with malicious actors able to mine social media accounts to create customised spear phishing emails. It is alarming to think, but an AI-powered bot can create a sophisticated and convincing campaign to your accounting firm clients, stealing your brand, logos or messaging.

In the same vein, AI-generated deepfakes can now convincingly impersonate accounting firm executives through images, video and voice recordings with nefarious intentions, such as conveying misleading information or engaging in blackmail targeting clients.

To bolster resilience against these social engineering methods, accounting firms should update their cybersecurity policies, processes and incorporating safeguards such as multi-factor authentication (MFA) as a baseline defense, and also train their accounting team to recognise social engineering threats.

3. Practice management software is always at risk

While some firms were more prepared for the normalisation of remote working than others, it has overall been a smooth transition for accounting firms, particularly those with good accounting practice management software solutions. 

According to In the Black, the pandemic saw a huge uptake in digital transformation services, as well as an exodus from traditional and analogue systems to moving into cloud-based practice management software. 

We could argue that most firms could breathe a sigh of relief that the tech was working from home and that they could continue to deliver services to clients, the serious and urgent need to consider the cyber threats facing them has been hard to ignore. Accounting firms should always ensure that they have the required level of cyber security to practice safely from home.

4. Protect your cloud software

While cloud-based accounting practice software has the capacity to streamline an accounting firm’s operations and boost productivity, its popularity has also made it a much larger target.  

Firms must be aware that direct attacks against cloud services are on the rise according to ZD Net, and it’s critical that decision-makers do their due diligence on their chosen provider, where the servers are located, and how their data will be managed in the event of a breach.  

5. The ever-present risk of human error 

Accounting firms in 2024 should always be mindful of the biggest cybersecurity risk to their practice: their staff.  

Security Magazine found that human error accounts for 95% of all cyber breaches, and if your people aren’t trained in how to manage sensitive data while accessing their work remotely, it can open you up to significant vulnerabilities to the firm and its clients. 

If you or your accounting practice staff have flexible working arrangements that includes working from home, you will need to make sure that you're protected from cybersecurity risks, such as phishing emails and calls, a compromised home network, not following best practice for sharing and keeping accounting practice data, your password manager, and even your own personal device.

Download our employee checklist for more information on how you and your flexible workplace employees can keep your accounting firm data safe from cybersecurity threats.

Conclusion

It’s clear that cyber threats aren’t going away in 2024. On the contrary, their frequency is growing and they are targeting susceptible industries such as accounting and financial services.

With the cost of not investing in cybersecurity a potential practice-killer, today is the day to start formulating a plan for the future; a future that embraces cybersecurity tools to protect your firm and your clients from external attacks.

If you’re ready to experience ISO 27001-certified accounting software that has been build and implemented for accountants with security in mind, contact the experts at Access today. We’ll work directly with you to understand your specific needs and deliver a solution that supports greater productivity while bolstering your cyber defences.

Where can I find more on cybersecurity for accounting firms? 

It’s important to keep on top of what is happening in the spare of cybersecurity for accounting firms. This is one of the best ways you can emphasise the importance of emerging cybersecurity trends to your workforce, and the role that everyone must play to keep your firm protected from cyber criminals. 

• The Australian Government’s Business website has a wealth of tips to help accounting firms protect themselves from scams. 
• The Australian Cyber Security Centre (ACSC) is another trusted resource, and accounting firms can register to get alerts on new emerging threats. 
• Accountants Daily regularly update their website with news and insights concerning cyber security for accounting firms.